The organic revenue decline and 30% GAAP EPS drop are significant headwinds, but the Digital and Data Center Solutions growth trajectories offer a compelling long-term narrative. Monitor the Q3 conference call for updates on Middle East recovery timing and the pace of Data Center Solutions scaling toward the $1B+ annualized run-rate target.
Price Chart
Executive Summary
SLB reported Q2 2026 revenue of $8.97B (+5% YoY, +3% QoQ) and adjusted EPS of $0.55, beating the $0.52 consensus by 6.1%. While headline revenue grew, the growth was entirely acquisition-driven (ChampionX); excluding ChampionX, revenue declined 5% YoY. GAAP EPS fell 30% YoY to $0.52, and adjusted EBITDA declined 7% YoY, reflecting ongoing Middle East conflict disruptions and margin compression. The sequential improvement in Digital and Production Systems margins, coupled with strong Data Center Solutions growth (80% YoY), provides a positive narrative, but the underlying organic revenue decline and earnings contraction make this a mixed report with notable headwinds.
Key Financial Metrics
Key Facts
- Revenue of $8.97B (+5% YoY, +3% QoQ) beat consensus of $8.68B.
- GAAP EPS of $0.52 (-30% YoY); adjusted EPS of $0.55 beat consensus of $0.52 by 6.1%.
- Excluding ChampionX acquisition, organic revenue declined 5% YoY.
- Adjusted EBITDA of $1.90B (-7% YoY); margin contracted 284 bps to 21.2%.
- Cash flow from operations was $1.36B; free cash flow was $716M.
- Digital Division revenue grew 18% YoY; ARR reached $1.04B (+15% YoY).
- Data Center Solutions revenue grew 80% YoY to $186M in the quarter.
- Middle East & Asia revenue declined 14% YoY due to conflict-related disruptions.
- SLB repurchased 12M shares for $648M during the quarter.
- Board approved a quarterly dividend of $0.295 per share.
Financial Impact
Revenue beat consensus by ~$290M; adjusted EPS beat by $0.03. Organic revenue declined 5% YoY, and GAAP net income fell 22% YoY.
Risk Factors
- Prolonged Middle East conflict disrupting operations and revenue in a key region.
- Organic revenue decline (ex-ChampionX) of 5% YoY signals underlying market weakness.
- Adjusted EBITDA margin compression of 284 bps YoY indicates cost pressures.
- Net debt increased to $8.7B from $7.4B at year-end 2025, reducing financial flexibility.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-315068 |
| Document: d122193d8k.htm | 0001193125-26-315068 |
| Document: 0001193125-26-315068-index-headers.html | 0001193125-26-315068 |
| Document: 0001193125-26-315068-index.html | 0001193125-26-315068 |
| Document: 0001193125-26-315068.txt | 0001193125-26-315068 |
| 8-K Data (Synthetic) | 0001193125-26-315068 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 31, 2026 4w ago | 8-K | $60.10 $49.87 | ▼ −17.02% | ▼ −16.83% | $48.74 (−18.90%) |
Jul 24, 2026 10w ago | 8-K | $52.42 $53.85 | ▲ +2.72% | ▼ −0.90% | $48.74 (−7.02%) |
Jun 10, 2026 16w ago | 8-K | $55.51 $47.24 | ▼ −14.90% | ▼ −18.52% | $48.74 (−12.20%) |
May 29, 2026 18w ago | S-3ASR | $54.27 $46.38 | ▼ −14.53% | ▼ −12.74% | $48.74 (−10.18%) |
Apr 29, 2026 22w ago | Insider Cluster | $55.68 $56.50 | ▲ +1.47% | ▼ −3.99% | $48.74 (−12.46%) |
Apr 24, 2026 23w ago | 8-K | $56.15 $57.25 | ▼ −1.96% | ▲ +2.06% | $48.74 (+13.19%) |
Mar 25, 2026 27w ago | Insider Cluster | $51.90 $54.77 | ▲ +5.53% | ▼ −2.33% | $48.74 (−6.09%) |
Feb 28, 2026 30w ago | Institutional Cluster | $51.24 $51.53 | ▲ +0.57% | ▲ +8.51% | $48.74 (−4.88%) |
Feb 26, 2026 31w ago | DEFA14A | $51.33 $53.50 | ▲ +4.23% | ▲ +11.79% | $48.74 (−5.04%) |
US Market Status
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